Loyalty Programs and Direct Website Performance: An Empirical Analysis of Global Hotel Brands

Abstract

With loyalty programs increasingly used as a competitive method by hotel brands, this study investigates the relationship between program size/satisfaction and brand direct website performance. Analyzing a unique database of loyalty program statistics, traffic levels/sources and engagement metrics from the top 50 global hotel brands, we find that size matters, with larger programs performing better in terms of both traffic and engagement, suggesting that efforts by hotel brands to grow membership are appropriate. Similarly, program satisfaction positively impacts both traffic levels and engagement, suggesting that brands should also focus on ensuring that existing members are happy with program benefits and operations. These findings are consistent irrespective of brand level, suggesting that all types of hotel brands can profit from leveraging loyalty programs.

Corporate branding and firm performance: a study among Oman hotel industry

“…The financial performance of 570 hotel chains that operated in Portugal has examined by Martins, Vaz, and Alves (2021) and investigated the issue of brand loyalty, hotel chains with comparable star ratings and market orientation were examined. O’Connor (2021) examined the relationship between program size and online branding through websites because loyalty programs are being employed as a competitive strategy by hotel brands for their firm performance. Amin, Ryu, Cobanoglu, and Nizam (2021) revealed how the effectiveness of hotel websites plays a key role in fostering e-trust, affective organizational commitment and online hotel booking intentions.…”

“…Thus, hotel brands should similarly focus on members' happiness with versatile program benefits. Corporate branding is able to firm performance by leveraging loyalty programs (O'Connor, 2021). Online website hotel marketing approaches affect both online customer review and firm performance.…”